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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: jbn3 who wrote (54191)	7/26/1998 9:24:00 PM
From: Dan Spangenberg	Read Replies (2) \| Respond to of 176387

jbn3 <<DELL OPTIONS 101: Wait until after earnings, and the price frequently drops a bit. That's when to buy the call options or LEAPs. I bought the AUG 95s @ 3 5/8 back in June--only wish I had 100!!! >> For my own option education and future reference would you mind answering the following? Where was dell when you bought the options? I see the June range was roughly 78-94. I'm trying to see how far out of the money they were when you bought them compared to the cost. Naturally I assume you bought them at the low? :~) Was the plan to keep them until Aug earnings? Thanks for the info. My problem with options is trying to understand and justify the high premiums on the farther out months and out of the money strike prices, especially on the leaps. Thanks Dan

To: jbn3 who wrote (54191)	7/26/1998 11:11:00 PM
From: SecularBull	Respond to of 176387

3, I would add to DELL OPTIONS 101 that the further out you can buy, the better. I have found last weeks turbulence to be much less disturbing, owning Jan 2000 and Jan 2001 calls, than I would have if I owned Aug 98 calls. I also do not necessarily advocate holding these LEAPS until expiration, but rather rolling out of them after I have held them long enough to get the lower tax rates. I will then either replace them with other, further out, LEAPS (at that time) or move on to other stocks. There is certainly a great deal of $$$ to be made in the shorter term, as well. However, having to cut Uncle Sam in on the deal, and then having to replace my share leverage position on a much more frequent basis is a chore. The downside to LEAPS (for those who don't know): Price! LoD